PF deduction over 15000 basic

As we all know that every employee who is getting a salary of 15000 Rs or less than 15000 Rs will come under EPF scheme. Earlier this limit was 6500 Rs but after some amendments this limit was increased to 15000 Rs.  So whenever there is less than salary of 15000 Rs then PF calculation is not a problem,  but there are so many queries regarding how to calculate PF of basic salary more than 15000 Rs.

Cases When  We Need To Calculate PF Of Basic Salary More Than 15000

In some cases employers will so willingness to pay PF contributions to employees whose basic + DA is more than 15000 Rs. In those cases we need to do these kind of calculation. But before going to learn how to calculate PF of basic salary more than 1500 we have to learn some basic concepts of PF contribution percentages.

What are the PF contribution percentages:

Most of the EPF contributors are not aware that PF contribution is divided in to two parts, they are provident fund and pension contributions. As per provident fund act 1952, 12% of employee basic salary will goes to provident fund account of employee. Now employer also need to pay same 12% contribution to EPFO but in this 12%, 3.67% will go  to  employee provident fund contribution and remaining 8.33% will go to pension fund of employee.

Employer also needs to pay 0.65% of admin charges ( earlier it was 0.85%) , 0.5% Employee Deposit Linked Insurance Charges ( EDLI ). So total contribution  of employer is 3.67% + 8.33% + 0.65% + 0.5% = 13.15 %

PF Contribution Percentages

Employee	12% Provident Fund Contribution
Employer	3.67% Provident Fund Contribution 8.33% Pension Contribution 0.65% Admin Charges 0.5% EDLI Charges